Gas price wars spill over in Marshalls Creek stations

MARSHALLS CREEK — This war is popular with the public, but there could be casualties.

Beth Brelje

MARSHALLS CREEK — This war is popular with the public, but there could be casualties.

A gas battle erupted this week along Route 209 in Marshalls Creek, and it is costing J&N Service Center owner John Somma big bucks.

"I'm losing six or seven hundred dollars a day," Somma said. His full-service Getty station is across from Mr. Z's.

The gas war started Sunday when a long-vacant gas station at the intersection of Route 209 and Route 209 Business — practically next door to J&N Service Center — opened for business.

"The other guy came in, and instead of being a gentleman, he undercuts me. Instead of being in line with everybody else, he goes 12 cents lower," Somma said.

Sunday, Somma said, he started the day at $2.31 a gallon and the new place, Gas Express, set its price at $2.19.

By noon Monday, both stations were at $1.84 for a short time. Somma said he was selling his gas at 23 cents under cost in an attempt to keep up with the new competitor.

"What do I do? Let this guy bury me?" Somma asked.

At Gas Express, two men, Jay Singh and Ron Singh, each identified them selves as the manager. Both insist that it was Somma who dropped the price first.

"The boss told me to keep it low. He (Somma) was at $2.69 when we started. Now he's $1.84. You can tell who was making money," Jay Singh said.

The men said they are simply following Somma's lead.

"We just follow the market. We're here to make money. The boss said to keep it low but don't go below cost," Ron Singh said.

If $1.84 is still above cost, what is Gas Express paying per gallon?

Despite his main task of setting the retail price, Ron Singh says he doesn't know. Singh thinks they are paying $1.73 a gallon. "I'm not sure 100 percent. I don't handle the paperwork," he said.

Neither man would share the owner's contact information. When asked, Ron Singh said the owner of Gas Express is named Jimmy, but he did not know Jimmy's last name. Three days after opening a new business, owner Jimmy is in India and unavailable.

Over the lunch hour Tuesday, drivers lined up at the eight Gas Express pumps for $1.84 gas. One woman became incensed when someone cut her off and got to the pump before her. She leaned on the horn for a long time, but the line hopper did not move.

Meanwhile, a man filled up not only his car tank but also stockpiled in two large red gas containers.

Smart move. By 3 p.m. the price at both places had been bumped up 18 cents to a still-attractive $2.02. Somma went up first.

Gas Express is taking cash only, but will reportedly soon be able to process credit and debit cards.

Somma already takes credit cards, and has to pay a 3 percent processing fee for each card used, plus the station doesn't offer self-service. An employee is paid to pump the gas.

Those are not the only things making the playing field uneven. Somma is a smaller operation. He paid $2.50 a gallon for his supply two weeks ago. Prices have dropped since then. Gas Express has more buying power and goes through its supply more quickly.

So while Somma is still selling the $2.50 supply, Gas Express likely found a better deal. Somma, though, doubts Gas Express paid $1.73 a gallon.

Somma went to Gas Express to discuss stabilizing price above cost and said he was told Gas Express owns 17 stations and it can afford to "lose all day." "Why do they want to knock the little guy out?" Somma asked.

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